Systems Analysis & Design

7th Edition

Chapter 2

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Systems planning is the first of five phases in the systems development life cycle (SDLC)

In this phase, you will learn how IT projects get started and how a systems analyst evaluates a proposed project and determines its feasibility

Phase Description

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Chapter Objectives

Explain the concept of a business case and how a business case affects an IT project

Describe the strategic planning process and why it is important to the IT team

Explain the purpose of a mission statement

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Chapter Objectives

Describe the SDLC, and explain how it serves as a framework for systems development and business modeling

Describe risks and risk management features

List the reasons for information systems projects and the factors that affect such projects

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Chapter Objectives

Explain the initial review of systems requests and the role of the systems review committee

Define operational feasibility, technical feasibility, economic feasibility, and schedule feasibility

Describe the steps in a preliminary investigation and the end product of an investigation

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Introduction

The term business case refers to the reasons, or justification, for a proposal

Systems development typically starts with a systems request, followed by a preliminary investigation, which includes a feasibility study

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Strategic Planning – A Framework for IT Systems Development

Strategic planning is the process of identifying long-term organizational goals, strategies, and resources

Strategic Planning Overview– SWOT analysis

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Strategic Planning – A Framework for IT Systems Development

From Strategic Plans to Business Results– Mission statement– Stakeholders– Goals– Objectives

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Strategic Planning – A Framework for IT Systems Development

A Business Example– Critical success factors – Critical business issues – Case for action

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Strategic Planning – A Framework for IT Systems Development

The Role of the IT Department in Project Evaluation– Management leadership and information

technology are linked closely, and remarkable changes have occurred in both areas

– Today, systems development is much more team oriented

– Although team-oriented development is the norm, some companies see the role of the IT department as a gatekeeper

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Strategic Planning – A Framework for IT Systems Development

The Future– If you could look into the future, here is what

you might see: New industries, products, and services emerging from amazing advances in information technology, customers who expect world-class IT support, a surge in Internet-based commerce, and a global business environment that is dynamic and incredibly challenging

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What Is a Business Case?

Should be comprehensive, yet easy to understand

Should describe the project clearly, provide the justification to proceed, and estimate the project’s financial impact

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Main Reasons for Systems Projects– Systems request – Improved service– Support for new products and services– Better performance– More information

Information Systems Projects

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Information Systems Projects

Main Reasons for Systems Projects– Stronger controls

• Encryption and biometric devices– Reduced cost

Factors that Affect Systems Projects– Internal and external factors affect every

business decision that a company makes, and IT systems projects are no exception

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Information Systems Projects

Internal Factors– Strategic plan– Top managers– User requests– Information technology department– Existing systems and data

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Information Systems Projects

External Factors – Technology

• Electronic product code (EPC)

– Suppliers• Just-in-time

(JIT)

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Information Systems Projects

External Factors– Customers

• Customer Relationship Management (CRM)• Electronic proof of delivery (EPOD)

– Competitors– The economy– Government

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Information Systems Projects

Project Management Tools– All IT projects, large and small, must be

managed and controlled– Project management begins with a systems

request, and continues until the project is completed or terminated

Risk Management– Every IT project involves risks that system

analysts and IT project managers must address– Risk management

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Evaluation of Systems Requests

Systems review committee Computer resources committee Systems Requests Forms

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Evaluation of Systems Requests

Systems Review Committees– Most large companies use a systems review

committee to evaluate systems requests– Many smaller companies rely on one person to

evaluate system requests instead of a committee

– The goal is to evaluate the requests and set priorities

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A systems request must pass several tests, called a feasibility study, to see whether it is worthwhile to proceed further

Overview of Feasibility

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Overview of Feasibility

Technical Feasibility– Technical feasibility refers to technical

resources needed to develop, purchase, install, or operate the system

Economic Feasibility– Total cost of ownership (TCO)– Tangible benefits– Intangible benefits

Schedule Feasibility

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Evaluating Feasibility

The first step in evaluating feasibility is to identify and weed out systems requests that are not feasible

Even if the request is feasible, it might not be necessary

Feasibility analysis is an ongoing task that must be performed throughout the systems development process

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Setting Priorities

Factors that Affect Priority– Will the proposed system reduce costs?

Where? When? How? How much?– Will the system increase revenue for the

company? Where? When? How? How much?

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Setting Priorities

Factors that Affect Priority– Will the systems project result in more

information or produce better results? How? Are the results measurable?

– Will the system serve customers better?– Will the system serve the organization better?

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Setting Priorities

Factors that Affect Priority– Can the project be implemented in a

reasonable time period? How long will the results last?

– Are the necessary financial, human, and technical resources available?

– Whenever possible, the analyst should evaluate a proposed project based on tangible costs and benefits that represent actual (or approximate) dollar values

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Setting Priorities

Discretionary and Nondiscretionary Projects– Projects where management has a choice in

implementing them are called discretionary projects

– Projects where no choice exists are called nondiscretionary projects

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Preliminary Investigation Overview

Preliminary investigation Interaction with Managers and Users

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Preliminary Investigation Overview

Planning the Preliminary Investigation– During a preliminary investigation, a

systems analyst typically follows a series of steps

– The exact procedure depends on the nature of the request, the size of the project, and the degree of urgency

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Preliminary Investigation Overview

Step 1: Understand the Problem or Opportunity– A popular technique for investigating causes

and effects is called a fishbone diagram, or Ishikawa diagram

– Pareto chart

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Preliminary Investigation Overview

Step 2: Define the Project Scope and Constraints– Project scope – Project creep– Constraint– Present versus future

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Preliminary Investigation Overview

Step 2: Define the Project Scope and Constraints– Present versus future– Internal versus external– Mandatory versus desirable– Regardless of the type, all constraints should

be identified as early as possible to avoid future problems and surprises

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Preliminary Investigation Overview

Step 3: Perform Fact-Finding– Fact-finding involves

various techniques– Fact-finding might

consume several hours, days, or weeks

– Analyze Organization Charts

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Preliminary Investigation Overview

Step 3: Perform Fact-Finding– Conduct interviews

• Determine the people to interview• Establish objectives for the interview• Develop interview questions• Prepare for the interview• Conduct the interview• Document the interview• Evaluate the interview

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Preliminary Investigation Overview

Step 3: Perform Fact-Finding– Review documentation– Observe operations– Conduct a user survey

Step 4: Evaluate Feasibility– Evaluate the project’s operational,

technical, economic, and schedule feasibility

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Preliminary Investigation Overview

Step 5: Estimate Project Development Time and Cost– What information must you obtain, and how will

you gather and analyze the information?– What sources of information will you use, and

what difficulties will you encounter in obtaining information?

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Preliminary Investigation Overview

Step 5: Estimate Project Development Time and Cost– Will you conduct interviews? How many people

will you interview, and how much time will you need to meet with the people and summarize their responses?

– Will you conduct a survey? Who will be involved? How much time will it take people to complete it? How much time will it take to prepare it and tabulate the results?

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Preliminary Investigation Overview

Step 5: Estimate Project Development Time and Cost– How much will it cost to analyze the information

gathered and to prepare a report with findings and recommendations?

– You should provide an estimate for the overall project, so managers can understand the full cost impact and timetable

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Preliminary Investigation Overview

Step 6: Present Results and Recommendations to Management– The final task in the preliminary investigation is

to prepare a report to management– The format of the preliminary investigation

report varies from one company to another

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Preliminary Investigation Overview

Step 6: Present Results and Recommendations to Management

• Introduction• Systems request summary• Findings• Recommendations• Project Roles• Time & cost estimates• Expected benefits• Appendix

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Chapter Summary

Systems planning is the first phase of the systems development life cycle

Effective information systems help an organization support its business process, carry out its mission, and serve its stakeholders

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Chapter Summary

Strategic planning allows a company to examine its purpose, vision, and values and develops a mission statement, which leads to goals, objectives, day-to-day operations, and business results that affect company stakeholders

Systems projects are initiated to improve performance, provide more information, reduce costs, strengthen controls, or provide better service

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Chapter Summary

Various internal and external factors affect systems projects

During the preliminary investigation, the analyst evaluates the systems request and determines whether the project is from an operation, technical, economic, and schedule standpoint

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Chapter Summary

Analysts evaluate systems requests on the basis of their expected costs and benefits, both tangible and intangible

The steps in the preliminary investigation are to understand the problem or opportunity; define the project scope and constraints; perform fact-finding; estimate the project’s benefits; estimate project development time and cost; and present results and recommendations to management

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Chapter Summary

The report must include an estimate of time, staffing requirements, costs, benefits, and expected results for the next phase of the SDLC

Chapter 2 complete